SYDNEY, AUSTRALIA: Armada Metals Limited , a nickel exploration company, has signed a binding term sheet to acquire an 80% controlling interest in the Bend Nickel Project in Zimbabwe from Reliant Nickel Limited, a UK private limited company.
The Project, located in the Midlands Province of Zimbabwe, covers a strategic 12km2 of prospective geology and contains the Bend Nickel Deposit, which was discovered by Anglo-American Prospecting Ventures in 1971 and drilled in the 1990s, with notable nickel intercepts reported from these programs.
Under the terms of the agreement, dated 19th July 2023, Armada has the right to earn an initial 50% interest in the Project, with the potential to increase its stake to 80%, via a two-stage earn-in process, subject to meeting specific exploration expenditure requirements. The earn-in process is as follows:
- Stage 1: Armada can earn a 50% interest in the Project by spending US$1.5 million on exploration within two years of signing the agreement.
- Stage 2: Armada can earn an additional 30% interest in the Project by spending US$2.5 million on exploration within three years of completing Stage 1.
The earn-in to the Bend Nickel Project provides the Company control over a highly prospective nickel asset and area in Zimbabwe, with drilling expected to commence in Q3 2023. With this transaction, Armada reinforces its commitment to expanding its nickel exploration portfolio to capitalise on the growing global demand for critical metals.
Armada’s Managing Director, John Smith, said: “We are very pleased to sign this agreement with Reliant and secure a controlling interest in the Bend Nickel Project, which has significant exploration potential and historical drilling results. This acquisition aligns with our strategy of acquiring and developing high-quality nickel projects in Africa and other jurisdictions. We look forward to working with Reliant and advancing the Project to the next stage of exploration and development.”
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